Toray Industries, Inc. announced its consolidated financial results for the fiscal year ending March 31, 2013, on the 10th. The group's consolidated sales increased 0.2% year-on-year to 1,592,279 million yen, while operating profit decreased 22.5% to 83,436 million yen, ordinary profit decreased 19.7% to 88,244 million yen, and net profit decreased 24.5% to 48,477 million yen.
In the core textile business, sales to automotive-related applications remained strong in Japan in the first half of the year due to increased production by automakers, but slowed in the second half as the impact of the end of eco-car subsidies became apparent. While sales for functional fall/winter apparel applications were strong, sales for other general apparel applications were significantly affected by the economic downturn and remained weak throughout the year.
In the overseas textile business, sales stagnated due to a noticeable decline in demand across Asia, caused by slowdowns in the European and American economies and domestic demand in China. Furthermore, the impact of the Thai floods in the first half of the year remained on both production and sales, making business recovery a challenge. Overall textile sales fell 1.0% year-on-year to 632.2 billion yen, and operating profit fell 4.6% to 43.2 billion yen.
While concerns remain over the European debt crisis, a gradual recovery is expected next fiscal year, driven by growth in emerging economies, including China, and the expansion of the U.S. economy. The company is hopeful that exports will recover due to the strong yen and that reconstruction-related demand will materialize. Toray is advancing its growth strategy based on its medium-term management plan, "Project AP-G 2013," and plans to expand airbag production at its textile business subsidiary in Thailand.
Taking into account the ongoing efforts to expand profits, the company forecasts consolidated sales of 1.84 trillion yen, operating profit of 120 billion yen, ordinary profit of 120 billion yen, and net profit for the next fiscal year of 65 billion yen. The company assumes an exchange rate of 95 yen to the dollar from April onwards.
In the core textile business, sales to automotive-related applications remained strong in Japan in the first half of the year due to increased production by automakers, but slowed in the second half as the impact of the end of eco-car subsidies became apparent. While sales for functional fall/winter apparel applications were strong, sales for other general apparel applications were significantly affected by the economic downturn and remained weak throughout the year.
In the overseas textile business, sales stagnated due to a noticeable decline in demand across Asia, caused by slowdowns in the European and American economies and domestic demand in China. Furthermore, the impact of the Thai floods in the first half of the year remained on both production and sales, making business recovery a challenge. Overall textile sales fell 1.0% year-on-year to 632.2 billion yen, and operating profit fell 4.6% to 43.2 billion yen.
While concerns remain over the European debt crisis, a gradual recovery is expected next fiscal year, driven by growth in emerging economies, including China, and the expansion of the U.S. economy. The company is hopeful that exports will recover due to the strong yen and that reconstruction-related demand will materialize. Toray is advancing its growth strategy based on its medium-term management plan, "Project AP-G 2013," and plans to expand airbag production at its textile business subsidiary in Thailand.
Taking into account the ongoing efforts to expand profits, the company forecasts consolidated sales of 1.84 trillion yen, operating profit of 120 billion yen, ordinary profit of 120 billion yen, and net profit for the next fiscal year of 65 billion yen. The company assumes an exchange rate of 95 yen to the dollar from April onwards.
